A new fertilizer that is better suited to a nation's topography and climate is an example of a technological advance that is:
A. Capital-using
B. Capital-saving
C. Capital-intensive
D. An in-kind investment
B. Capital-saving
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If the labor supply curve is nearly vertical, a tax on labor
a. has a large deadweight loss. b. raises a small amount of tax revenue. c. has little impact on the amount of work that workers are willing to do. d. results in a large tax burden on the firms that hire labor.
A rise in the price level because of an increase in the money wage rate
A. definitely triggers a cost-push inflation B. definitely triggers a demand-pull inflation C. might trigger a cost-push inflation D. might trigger a demand-pull inflation.
According to Pigou, the best way to deal with a negative externality is to
A. tax it. B. allow both parties to negotiate. C. assign liability to the party with the highest cost of prevention. D. assign liability to the party with the lowest cost of prevention.
Suppose that a person's nominal income rises by 5 percent and the price level rises from 125 to 130. The person's real income will:
A. fall by about 1 percent. B. remain constant. C. rise by about 4 percent. D. rise by about 1 percent.